As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset landscape, I must admit that the recent launch of the T-REX 2X Long MSTR Daily Target ETF and the T-REX 2X Inverse MSTR Daily Target ETF has piqued my interest. Coming from Defiance ETF’s 1.75x leveraged product, these new offerings seem to be raising the stakes in the crypto-ETF market significantly.
REX Shares and Tuttle Capital are teaming up to debut two innovative Exchange-Traded Funds (ETFs). These ETFs will provide investors with 2X leverage or inverse exposure to MicroStrategy’s shares, marking the first time such options have been made available.
On September 18, the investment managers declared the debut of two Exchange Traded Funds (ETFs) – a 2X Long version of MSTR (T-REX 2X Long MSTR Daily Target ETF) and a 2X Inverse version of MSTR (T-REX 2X Inverse MSTR Daily Target ETF).
The forthcoming products, designed to monitor MicroStrategy’s stock prices day-by-day while providing access to their Bitcoin (BTC) investment strategy, will be traded using the ticker symbols MSTU and MSTZ on the Chicago Board Options Exchange (CBOE).
First 2x leveraged & inverse MSTR ETFs
REX and Tuttle Capital have introduced their respective long and short ETFs related to MicroStrategy, which comes after Defiance ETF launched a 1.75 times leveraged ETF based on MicroStrategy in August. This Defiance ETF has seen a good level of trading activity since its introduction.
As a researcher, I find that the Multiplier Shares Trust Unit (MSTU) and Multiplier Shares Trust Z (MSTZ) might attract more interest due to their unique features – they are the initial Exchange-Traded Funds (ETFs) providing 2x leveraged and -2x inverse exposure, respectively, to MicroStrategy Inc. (MSTR) stock.
Eric Balchunas, a senior ETF analyst at Bloomberg, predicts that the REX/Tuttle MSTR ETF offerings will surpass Defiance’s 1.75 times MicroStrategy ETF in terms of popularity. Although Defiance’s product has seen significant success, the two newcomers are poised to provide volatility that could be 15 times greater than the S&P 500 (SPX).
Today, Tuttle surpassed the volatility threshold by introducing 2x and -2x ETFs for MSTR, exceeding Defiance’s 1.75x MSTR ETF which has seen great success. These new ETFs are expected to offer volatility approximately 15 times greater than that of the SPX index. Essentially, we’re witnessing a competition in the production of ‘hot financial products’.
— Eric Balchunas (@EricBalchunas) September 18, 2024
As per Greg King, CEO of REX Shares’ parent company REX Financial, the 2X ETFs offer traders a chance to delve into unique methods for interacting with MicroStrategy’s Bitcoin approach. This company, which initially acquired Bitcoin in August 2020, is currently the largest corporate owner of this digital asset.
These 2X-Leveraged and 2X-Inverse MSTR ETFs provide traders an extraordinary opportunity to tap into MicroStrategy’s Bitcoin involvement. Whether one aims to boost possible profits or safeguard against market fluctuations, these ETFs offer a unique approach.
Matt Tuttle, chief executive officer of Tuttle Capital Management
On September 18, at 12:55 ET, MicroStrategy’s shares were approximately $1.34 each. The stock saw a 2.2% increase in value throughout the day, and it has risen more than 95% compared to its year-to-date value.
Currently, Bitcoin is holding steady around $59,851, showing little movement over the last day but a significant increase of 35.4% since the start of the year.
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2024-09-18 20:18